Beleaguered Palm, Research in Motion face pressure from Apple’s revolutionary iPhone

Apple Online Store“Research In Motion Ltd. and Palm Inc. report quarterly results Thursday that will likely show sales gains but little headway against rival Apple Inc.’s iPhone,” Yukari Iwatani Kane and Niraj Sheth report for The Wall Street Journal.

“While both Palm and RIM released new devices recently—RIM’s Storm 2 in October and Palm’s Pixi phone last month—the companies continue to face pressure from the iPhone… According to research firm IDC, RIM and Palm gained market share in smart phones from the June quarter to the September quarter. But neither kept up with the momentum of the iPhone, which gained nearly five percentage points in that time. Palm, RIM and Apple declined to comment,” Kane and Sheth report.

“‘The expectations for both [Palm and RIM] are unusually low,’ said Tero Kuittinen, senior analyst at MKM Partners. He added that the marketplace has been tough for every company with the possible exception of Apple, which sold 7.4 million iPhones in the September quarter,” Kane and Sheth report.

“Analysts on average expect RIM to ship about 9.6 million smart-phone units for the quarter—up 43% from the same period last year. But RIM warned in September that prices on its phones would likely fall in coming months,” Kane and Sheth report. “Analysts say Apple’s price cut on an older iPhone model to $99 in early June also pressured BlackBerry sales in quarter.”

Kane and Sheth report, “Palm, Sunnyvale, Calif., is also projected to show mixed results for its fiscal second quarter ended Nov. 30… Morgan, Keegan & Co. analyst Tavis McCourt expects Palm to ship 720,000 smart-phone units in the quarter, up from 599,000 a year ago.”

Full article here.

MacDailyNews Take: Say a psalm for beleaguered Palm, or give them alms, because for Palm, Apple’s iPhone is no calming balm, it’s napalm. Certainly this won’t becalm Palm investors who should be having qualms that Palm is soon to be embalmed. And things look grim for margin-squeezed RIM, too.

[Thanks to MacDailyNews Reader “mark” for the “RIM/grim” suggestion.]

18 Comments

  1. Palm is in trouble, but RIM is fine. The problem is that expectations are very high for RIM, not that they won’t sell lots of phones. I mean sales will be up 30% year over year, and people will be disappointed in RIM.

  2. MDN: “Say a psalm for beleaguered Palm, or give them alms, because, for Palm, Apple’s iPhone is no calming balm, it’s napalm. Certainly this won’t becalm Palm investors who should be having qualms that the company is soon to be embalmed. And things look grim for margin-squeezed RIM, too.”

    Kanye West: Yo MDN, I’m really happy for you and imma let you finish but, I have the worst rhyming RAP of ALL TIMES.

  3. @silverhawk

    No, more like “coup”!

    This will happen when Apple releases a CDMA iPhone and Apple announces an agreement reached to have it run on Sprint’s network and Steve Jobs will kill two birds with one stone… Verizon for passing up on the iPhone then running those commercials and Palm, which has a lot of former Apple talent creating a “smartphone” PRE that lies and said it was an iPod in order to sync which pissed Steve off.

    “Vengeance is mine, I will repay” sayith the Lord (Romans 12:19 – King James Version) and we know Steve is a “God” when it comes to all things computer techno geeky stuff!

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